OREANDA-NEWS. February 22, 2011. The 9th Arbitration Appeal Court in Moscow dismissed the claims of “Promsynthez” OJSC, “Sverdlov Plant” Federal State-Owned Enterprise, “Bryansk Chemical Plant” Federal State Unitary Enterprise and “Rusperforator” Research-and-Production Enterprise” CJSC and upheld the decision of the Federal Antimonopoly Service (FAS Russia), reported the press-centre of FAS Russia.

On 18th November 2010, Moscow Arbitration Court also dismissed the claims in full.

On 21st January 2010, FAS Russia found that “Perm Powder Plant” Federal State-Owned Enterprise, “Kalinov Chemical Plant” OJSC, “Promsynthez” OJSC, “Sverdlov Plant” Federal State-Owned Enterprise, “Bryansk Chemical Plant” Federal State Unitary Enterprise and “Plastics Works” Federal State-Owned Enterprise violated Part 1 Article 11 of the Federal Law “On Protection of Competition” and “Rusperforator” Research-and-Production Enterprise” CJSC violated Part 3 Article 11 of the Federal Law “On Protection of Competition”.

The companies exercised concerted actions and coordinated activities of economic entities, which resulted in simultaneous fixing of identical prices for some industrial explosives.

The case was initiated upon a complaint from “Sevuralboxitruda” OJSC about actions of that “Perm Powder Plant” Federal State-Owned Enterprise, “Kalinov Chemical Plant” OJSC, “Promsynthez” OJSC, “Sverdlov Plant” Federal State-Owned Enterprise, “Bryansk Chemical Plant” Federal State Unitary Enterprise and “Rusperforator” Research-and-Production Enterprise” CJSC.

The FAS Russia’s Commission established that simultaneous fixing of identical prices for industrial explosives was a result of concerted actions of economic entities, coordinated by “Rusperforator” Research-and-Production Enterprise” CJSC.

The companies disagreed with the decision of the antimonopoly authority and filed a lawsuit. However, the Courts of two instances confirmed the position of the Antimonopoly Service.

Under Article 14.32 of the Code of the Russian Federation on Administrative Violations, the violators were held administratively liable. The total fines exceed 37 million Rubles.

Reference:

1. Part 1 Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between economic entities or concerted actions of economic entities on the goods market if such agreements or concerted lead or can lead to fixing or maintaining prices (tariffs), discounts, mark-ups, surcharges.

2. Part 3 Article 11 of the Federal Law “On Protection of Competition” prohibits coordination of economic activities of market participants if such coordination leads or can lead to fixing or maintaining prices (tariffs), discounts, mark-ups, surcharges.